Travelers heading to Canada’s largest city have something to look forward to next spring: Air Canada’s new U.S. flights from Billy Bishop Toronto City Airport (YTZ) in downtown Toronto.
The Star Alliance airline’s new nonstop flights to Boston, Chicago, New York and Washington, D.C., starting in March 2026 are Porter’s first challenge to YTZ’s U.S. route monopoly since it began flying south of the U.S. border in 2008.
Porter’s hometown of YTZ is unique in that jets are banned and airlines can only serve it with turboprop aircraft. Air Canada and Porter Airlines both operate exclusively 78-seat De Havilland Dash 8-400s to the airport.
“This means more options and more affordable prices for Toronto in the future,” said Katy Nastro, a travel expert at Going, a cheap flight deal alert service.
Cheap flights are good for consumers and encourage more people to fly, especially in markets like the U.S.-Canada, which are plagued by high fares (and taxes).
But one question lurks in the minds of most aviation industry observers: Is Toronto need These flights? Or is Air Canada hitting Porter where it hurts?
Travel from Canada to the United States has decreased. Looking at YTZ, Porter’s numbers dropped even more. Although it flies solo on U.S. routes, it has fewer seats now than a year ago. Air Canada and Porter are ripe for losses, and if travel demand doesn’t rebound, we may even see competitors throw in the towel and retreat.
YTZ: More flights, lower demand
Just minutes from downtown Toronto, YTZ sits on an island in Lake Ontario and is accessible by tunnel and ferry. However, demand for U.S. travel at this regional airport has not been strong.
Data provided by the U.S. Bureau of Transportation Statistics through aviation analytics company Cirium show that the number of people flying to the United States from YTZ fell by a quarter in the first seven months of 2025 compared with the same period last year. Relatedly, Porter has cut about 20% of its market seats.
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BTS data shows that the number of passengers heading to the United States from Toronto Pearson Airport (YYZ), the city’s main airport, fell by only 9% during the same period.
Overall, the number of Canadians entering the United States by air fell by nearly 12 per cent between January and July compared with the same period in 2024, the latest data from the U.S. International Trade Administration shows.
On October 23, Air Canada Chief Commercial Officer Mark Galardo said when asked about cross-border demand in an interview with YTZ New Routes:
“While Canadian travel to the U.S. has slowed, primarily for leisure purposes, there has not been a significant slowdown in business travel in the Canada-U.S. sector, nor has the number of Americans coming to Canada – in fact, it’s been very favorable from an exchange rate perspective. For all intents and purposes, the Canada-U.S. corridor is still a pretty strong corridor.”
He added that Air Canada has a “strong passenger base in Toronto that is loyal to the Air Canada brand” and is eager for the airline to offer U.S. flights from YTZ. The airline is also a close partner of United Airlines and can use its loyal base of flights on the U.S. side of the border to provide seats on the planes.
Air Canada told investors on Tuesday that travel demand for U.S.-Canada flights is “steady.”
Cirium timetables show that despite the decline in flight numbers, the number of seats flying to the United States from YTZ from January to July 2026 will increase by 27 per cent compared with the same period this year as Air Canada enters the market.
Toronto-New York Traveler Discount (Currently)
Toronto visitors appear to be benefiting from the new competition, at least initially. Google Flights fare data for November 13 shows that when Air Canada launches its first nonstop flight from YTZ to New York’s LaGuardia Airport (LGA) on March 29, 2026, the lowest fare on the route will drop 28%, from $185 to $133 one-way.
The new LGA flights are made possible as U.S. Customs and Border Protection opens a new pre-clearance facility at YTZ, allowing travelers to pass passport control in Toronto and arrive in the United States as if they were flying domestically. The facility will open next spring.
Porter serves New York City and the broader tri-state area through Newark Liberty International Airport (EWR) in New Jersey.
But you don’t get the same savings when traveling from YTZ to Boston Logan International Airport (BOS) or Dulles International Airport (IAD). Google Flights fare data shows one-way fares on both routes have remained unchanged at $214 and $183 respectively in the weeks leading up to and after Air Canada launches flights next June and July.
In Chicago, Air Canada will provide service to O’Hare International Airport (ORD), while Porter Airlines will provide service to Chicago Midway International Airport (MDW). Fares between Toronto and Chicago increased 72 per cent, from $111 to $191 one way.
Nastro attributed the rise in airfares in part to uncertainty in U.S.-Canada relations since President Donald Trump took office in January.
“The biggest reason we see cheap flights is competition [but] Add an external wildcard and all bets are off when it comes to the availability of cheap flights,” she said.
Air Canada vs Porter
“Air Canada has a well-established track record of targeting competitors,” said one airline consultant who has worked in the Canadian market but spoke on condition of anonymity.
WestJet, Canada’s second largest airline, has used YYZ as its hub for many years to challenge Air Canada. However, the company cut back on its core Western Canadian market in 2022 after fierce competition from the flag carrier.
Porter fills the void left by WestJet at YYZ in 2024, launching its own long-haul flights using new Embraer E-Jets aircraft to destinations in Canada, the United States and the Caribbean.
Air Canada’s expansion at YTZ could be a competitive response to Porter’s growth at the airline’s largest hub.
“We’ve been waiting a long time to expand our presence here and we’re excited to see it succeed,” Gallardo said.
A Porter spokesman also had nothing constructive to say about new competition at his hometown airport.
“YTZ remains the focal point of the Porter Regional Network,” the spokesman said. “We will continue to consider opportunities to add flights at Billy Bishop Airport as we build a highly integrated network across North America. Porter Airport’s continued growth and unique service standards are clearly disrupting competition, resulting in significant benefits for travelers.”
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